The UK Supreme Court finds that the OFT did not act unlawfully in failing to repay fines imposed on tobacco manufacturers as part of a retail pricing investigation’s settlement (Gallaher / Somerfield)

The Supreme Court has found that the OFT (the CMA's predecessor) did not act unlawfully in failing to repay fines imposed on Gallaher and Somerfield as part of their settlement of the OFT's tobacco retail pricing investigation. This was the case despite there being: a successful appeal against the infringement decision by other parties; and the OFT honouring an assurance to one of the other settling parties, TMR, that it would benefit from a successful appeal by others The Supreme Court held that the OFT's assurance to TMR was given in error but this did not affect the position of Gallaher and Somerfield. The OFT's decision in 2012 to repay the fines imposed on TMR in light of the assurance it received in 2008, but not to extend this to Gallaher and Somerfield, was objectively justified